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In brief: Argentina

* Argentina’s national statistics institute (Indec) has released its latest economic growth figures, which show that the country’s GDP fell by 4.2% year-on-year in the second quarter. The GDP contraction is the sharpest since 2014 and breaks the previous trend of five consecutive quarters with positive growth. Indec has attributed the fall in activity to the drought that has been affecting the agricultural sector and to the volatility in the currency market, which has undermined the local financial sector and sparked capital flight. The second quarter GDP results bring the accumulated growth rate so far this year to -0.5% and means that the 3.5% growth forecast for the year included in the 2018 national budget is now completely out of reach; and that Argentina will likely fall back into recession after posting GDP growth of 2.9% in 2017 following a -1.8% contraction in 2016.